Branchless banking rising in Pakistan
STAFF REPORT IBD: The branchless banking network in Pakistan expanded by 16 per cent in the second quarter (October- December 2011) of the last current fiscal year 2011-12 to reach 22,512 agents covering the entire length and breadth of the country.
According to a report of State Bank of Pakistan, the number of branchless banking accounts increased by 40 per cent to 929,184 in October-December, 2011 period as compared to the previous quarter. The total branchless banking deposits jumped by 169 per cent to Rs 503 million in the quarter under review as compared to previous quarter, it said.
“The number of branchless banking transactions during the second quarter surged by 30 per cent to 20.6 million while the value of transactions showed a growth of 35 per cent to reach Rs. 79,410 million,” the report said.
The bills payment and top-ups remained the dominating activity in the quarter under review with 53 per cent share in total numbers, followed by fund transfers and deposits with share of 39 percent and 8 per cent respectively, it said and added that the P2P payments remained the most popular mechanism with 74pc share in the total funds transfer.
Initial high concentration in P2P transactions suggests that the industry needs to develop a viable value-proposition for registration and activation of mobile accounts, it added.